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A new contribution to the 'Paris Metro Pricing' proposal

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Abstract:

Using the concept of the 'Paris Metro Pricing', we will show that, when the distribution of the capacity between sub-networks leads to any loss of technical effectiveness and when a traditional condition on the 'hazard rate' is checked, it is always optimal for the monopolist to subdivide his main network in as many sub-networks as there are different types of net surfers.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600690173

Affiliations: G.R.E.Q.A.M, University of Aix-Marseille 2, France

Publication date: July 1, 2007

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